811.20 Defense (Wool)/568
The Secretary of State to the Uruguayan Ambassador (Blanco)
Excellency: I have the honor to refer to Your Excellency’s note of July 17, 1942, with respect to the difficulty, due to the inadequacy of shipping in Montevideo, of financing wool sold and ready for shipment.
This Government has been making a special effort to supply shipping space for additional quantities of Uruguayan wool. With the shipping that has been and is now available in the Plate, no difficulty should exist in regard to financing wool, sold and ready for shipment, on the basis of payment against shipping documents.
The Department of State and other interested Government agencies have on numerous occasions during the past month discussed the situation regarding the current Uruguayan wool market. There has been general recognition of the importance of wool in the Uruguayan economy and it may now be said that there is a definite intention to provide an assured market through purchase by a United States Government [Page 699] agency, or otherwise. However, there is a belief that Uruguayan interests will be best served if the Montevideo market is aligned more closely to world markets.
Conversations among the several Government agencies in regard to this matter are still in an exploratory stage, as are those relating to the possibility of negotiating purchase agreements for Uruguayan products other than wool. However, when these conversations have progressed to more specific terms, the Department will advise Your Excellency.
Accept [etc.]